The Shocking Truth About Who Pays Realtor Fees in 2026 (And How to Save Thousands)

So, Who Actually Pays Realtor Fees When You Sell a Home?

Who pays realtor fees is one of the first questions I get from homeowners thinking about selling — and honestly, the answer changed pretty dramatically in 2024. I’m David Speers, and I run HomeRise, Houwzer, and Trelora — three real estate companies built around the idea that who pays realtor fees shouldn’t be a mystery, and the amounts shouldn’t be highway robbery. Let me walk you through exactly how this works right now, because the old rules don’t fully apply anymore.

The Old Way: How Realtor Fees Worked Before August 2024

For decades, the answer to who pays realtor fees was straightforward — at least on paper. The home seller paid both the listing agent’s commission and the buyer’s agent’s commission. These fees came out of the sale proceeds at closing, usually totaling somewhere between 5% and 6% of the home’s sale price.

On a $400,000 house, that meant $20,000 to $24,000 in realtor fees. The seller’s agent and buyer’s agent would split it, typically 2.5% to 3% each. The buyer never wrote a separate check for their agent — the cost was baked into the transaction, and most buyers never thought twice about it.

Here’s what always bugged me about this system: the question of who pays realtor fees had a terrible answer. The seller was paying for someone to negotiate against them. Think about that. You’re selling your house, and you’re footing the bill for the person whose entire job is to get your buyer a lower price. It never made sense, but it was how the industry operated because the National Association of Realtors (NAR) and local MLS systems enforced it through cooperative compensation rules.

The listing agent would input a buyer’s agent commission offer into the MLS when listing a property. If a listing offered 2.5% to buyer’s agents, that’s what every buyer’s agent knew they’d earn by bringing a client to that home. Refuse to offer a competitive commission, and buyer’s agents might steer clients away from your property. Nobody questioned who pays realtor fees because the system made it invisible — and it cost sellers billions of dollars every year.

What Changed: The NAR Settlement and Who Pays Realtor Fees Now

In March 2024, the National Association of Realtors settled a massive antitrust lawsuit for $418 million. The class action — originally known as the Sitzer/Burnett case — proved what many of us in the industry already knew: the old commission structure was anticompetitive and inflated costs for sellers.

The settlement took effect on August 17, 2024, and it changed two critical things about who pays realtor fees. First, sellers are no longer required to offer compensation to buyer’s agents through the MLS. The MLS field where listing agents used to input that cooperative commission? Gone. Second, buyers now have to sign written agreements with their agents before touring homes, and those agreements must clearly state what the buyer’s agent will be paid.

So who pays realtor fees today? The short answer: it depends on what you negotiate. The seller still pays their own listing agent’s commission — that hasn’t changed. But the buyer’s agent commission is now genuinely up for negotiation. Buyers can pay their own agent directly, sellers can still offer to cover it as a concession, or the parties can split it. Nothing is automatic anymore.

Breaking Down Who Pays Realtor Fees: Seller’s Side

When you break down who pays realtor fees on the seller’s side, this is the piece that’s clearest.

As a seller, you’ll negotiate a commission with your listing agent before signing a listing agreement. This is the fee for marketing your home, handling showings, negotiating offers, and managing the transaction through closing. Typical listing agent commissions range from 1% to 3% depending on the service model.

At a traditional brokerage, expect to pay 2.5% to 3% to your listing agent. At a company like HomeRise, we charge a flat fee or a significantly reduced commission because we’ve built a more efficient model. The difference on a $400,000 home between 3% and 1% is $8,000 — real money that stays in your pocket.

You might also choose to offer a concession toward the buyer’s agent commission. This isn’t required anymore, but many sellers still do it because it can make their home more attractive to buyers who might not be able to afford agent fees on top of their down payment and closing costs. I’ll dig into the strategy behind this decision in a minute.

Who Pays Realtor Fees on the Buyer’s Side After the NAR Settlement

Understanding who pays realtor fees gets more complicated on the buyer’s side — and this is where a lot of confusion lives right now.

Before August 2024, buyers almost never paid their agent directly. The commission came from the seller’s proceeds, and buyers might not even have known exactly how much their agent earned. Now, buyers are required to sign a buyer representation agreement that spells out their agent’s compensation upfront.

Here’s what that looks like in practice. A buyer’s agent might charge 2% to 2.5% of the purchase price, a flat fee, or even an hourly rate. The buyer agrees to this amount before the agent shows them a single house. If the seller offers a concession that covers all or part of that fee, great — the buyer’s out-of-pocket cost drops. If the seller doesn’t offer anything, the buyer pays their agent directly.

Can buyers roll their agent’s fee into the mortgage? Not directly — you can’t finance realtor fees the way you finance the purchase price. But a buyer could negotiate a higher sale price with a corresponding seller concession that effectively folds the commission into the deal. It’s a workaround, and lenders have guidelines about how much in concessions they’ll allow, but it’s happening in the market right now.

The practical reality is that many sellers are still offering some level of buyer agent compensation because the market hasn’t fully adjusted to the new rules around who pays realtor fees. Buyers are used to not paying their agent directly, and sellers don’t want to scare off potential buyers — especially in markets that aren’t red hot.

How Much Are Realtor Fees in 2026?

Knowing who pays realtor fees is one thing — knowing how much they pay is what really matters when you’re trying to budget for selling your home.

The national average total commission has dropped since the settlement. Before August 2024, it hovered around 5.4% to 5.8% total. Current data from multiple sources shows it settling closer to 5% total, and that number continues to inch downward. Some markets — particularly competitive ones like Austin, Denver, and parts of Florida — are seeing total commissions in the 4% to 4.5% range.

But those averages hide the real story of who pays realtor fees and how much. Here’s what sellers are actually paying right now across different service models:

Traditional full-service brokerage: 2.5% to 3% for your listing agent, plus whatever buyer agent concession you choose to offer (often 2% to 2.5%). Total: 4.5% to 5.5%.

Discount or flat-fee brokerage (like HomeRise): 1% to 1.5% for your listing agent, plus optional buyer agent concession. Total: 1% to 3.5% depending on your concession strategy.

FSBO with flat-fee MLS: $300 to $500 for the MLS listing, plus optional buyer agent concession. Total: $300 to 2.5% plus the flat fee.

On that $400,000 house, the difference between a traditional 5.5% commission ($22,000) and a HomeRise-style approach at 3% total ($12,000) is $10,000. That’s not a rounding error. That’s a family vacation, a chunk of your next down payment, or six months of car payments.

Who Pays Realtor Fees: Common Scenarios Explained

Let me run through the situations I see most often, because who pays realtor fees really does vary based on your circumstances and the local market.

Scenario 1: Seller in a hot market. You’ve got multiple offers coming in. You’re in a strong position. In this case, you might offer zero or minimal buyer agent concessions. Buyers competing for your home will figure out how to pay their own agents. Your total out-of-pocket for realtor fees could be just your listing agent’s commission — maybe 1% to 2.5% depending on who you hire.

Scenario 2: Seller in a balanced or buyer’s market. You need every edge to attract buyers. Offering a 2% to 2.5% buyer agent concession makes your home easier to buy, especially for first-time buyers who are already stretching to cover the down payment. Your total cost: 3.5% to 5.5%.

Scenario 3: Buyer with cash or strong financing. You can negotiate your agent’s fee more aggressively because you’re an attractive buyer. Some buyer’s agents will accept a flat fee or reduced percentage for cash buyers since the deal is likely to close quickly with fewer complications.

Scenario 4: First-time buyer with limited funds. You’re watching every dollar. Look for listings where the seller is offering concessions, and negotiate with your agent on their fee. Some buyer’s agents are now offering tiered services — lower fees for less hand-holding, higher fees for the full white-glove treatment.

Should Sellers Still Offer to Pay the Buyer’s Agent Commission?

This might be the most common question I hear about who pays realtor fees, and my answer isn’t what most traditional agents will tell you.

Here’s my take: it depends on your market and your timeline. If you’re in a market with strong demand and limited inventory, you have real leverage. Test the waters by not offering a buyer agent concession initially. You can always add one later if the property isn’t generating enough interest. There’s no rule that says you have to set your concession strategy on day one and stick with it forever.

If you need to sell quickly or you’re in a softer market, offering 2% to 2.5% toward the buyer’s agent is still smart strategy. Yes, it comes out of your proceeds. But a home that sits on the market for months costs you more in mortgage payments, maintenance, carrying costs, and eventual price reductions than a reasonable concession would have cost upfront.

I keep going back to this: the question of who pays realtor fees matters less than how much you net from your sale. Sometimes paying a bit more in concessions gets you a faster sale at a higher price, and sometimes cutting concessions puts more money in your pocket. Understanding who pays realtor fees gives you leverage — but only if you use that knowledge to run the numbers for your specific situation.

How the NAR Settlement Changed Who Pays Realtor Fees for Buyers

The question of who pays realtor fees looks different from the buyer’s perspective, and it directly affects sellers too.

The biggest shift is transparency. Buyers now see exactly what their agent charges before they start house hunting. That written buyer representation agreement isn’t optional — it’s required. And it’s forcing a conversation that the industry avoided for decades.

Some buyers are realizing they don’t need a full-service buyer’s agent. Maybe they’ve been through the home buying process before and just need someone to write the offer and handle the paperwork. For those buyers, a flat-fee or hourly agent can save thousands. Others — particularly first-time buyers navigating a complicated market — absolutely benefit from having an experienced agent in their corner and are willing to pay for it.

What this means for sellers is that your pool of potential buyers now has more varied fee arrangements. Some buyers might ask you to contribute toward their agent’s fee as part of the offer negotiation. Others won’t mention it at all. Being flexible on this point can give you an edge, but you shouldn’t feel obligated to cover the full buyer agent commission the way sellers did under the old system.

Who Pays Realtor Fees: State-by-State Differences

One thing that trips people up about who pays realtor fees is assuming the rules are identical everywhere. They’re not. While the NAR settlement applies nationally, state laws and local market customs create real differences in who pays realtor fees and how much they pay.

In states like Colorado (where we operate Trelora), the market adapted to commission transparency faster than most. Colorado already had strong disclosure requirements, and buyers there are more accustomed to discussing agent compensation openly. Total commissions in the Denver metro area have been trending below the national average for years.

In Pennsylvania (where Houwzer started), the traditional brokerage model held on longer. But even in Philly, we’re seeing total commissions drop as more sellers question the 6% model and seek alternatives. The states where commissions remain highest tend to be places with less competition among brokerages and more entrenched NAR influence.

Texas, Florida, and California are the big three to watch when it comes to who pays realtor fees going forward. These high-volume markets are where commission norms will shift the fastest because there’s so much money at stake. Early data from these states shows buyer agent commissions already falling from the 2.5% to 3% range down to 2% to 2.5% — and sometimes lower on luxury properties.

How to Save on Realtor Fees as a Seller

Now that you understand who pays realtor fees — mostly the seller, still — let’s get practical about how to reduce what you pay without sabotaging your sale.

Option 1: Use a flat-fee or low-commission listing service. This is what HomeRise was built for. You get full MLS exposure, professional marketing, and expert transaction management without the 3% listing commission. We’ve helped sellers save thousands because our model doesn’t rely on inflated commissions to be profitable.

Option 2: Negotiate your listing agent’s commission. Even at traditional brokerages, commissions are negotiable. Always have been — the industry just didn’t want you to know that. Ask for a reduced rate, especially if your home is priced above the median for your market or you’re bringing repeat business.

Option 3: Be strategic about buyer agent concessions. Don’t default to 2.5% because that’s what your agent suggests. Start at 2% and see what happens. Or offer a flat dollar amount instead of a percentage — $5,000 toward the buyer’s agent sounds reasonable and costs less on a $400,000 home than 2.5% ($10,000).

Option 4: Consider a hybrid approach. Sell the home yourself (FSBO) using a flat-fee MLS service for marketing, but offer a competitive buyer agent concession. You eliminate the listing agent commission entirely while still attracting buyers who are working with agents.

What Happens If the Buyer Can’t Afford to Pay Their Agent?

The question of who pays realtor fees gets especially painful for cash-strapped buyers. Many buyers — especially first-timers — are maxed out on cash between the down payment, closing costs, moving expenses, and everything else that comes with buying a home. Adding a 2% to 2.5% agent fee on top of all that can be a dealbreaker.

The industry is still figuring this out. Some of the solutions I’m seeing include agent fee financing through third parties, lender credits that offset agent costs, and creative concession structures where the seller contributes toward the buyer’s costs in exchange for a slightly higher sale price.

There’s also a growing segment of buyer’s agents offering reduced-fee services. If the buyer doesn’t need hand-holding through every step, a limited-service arrangement at 1% or a flat $3,000 to $5,000 fee can make homeownership more accessible. The old one-size-fits-all commission model is dying, and that’s a good thing for buyers and sellers alike.

From the seller’s perspective, being open to concession requests — rather than reflexively refusing them — can actually work in your favor. A buyer who asks you to cover $5,000 toward their agent’s fee but offers a strong price and quick closing timeline might be a better deal than a buyer who doesn’t ask for concessions but lowballs you by $15,000.

Who Pays Realtor Fees at Closing: The Mechanics

Regardless of who pays realtor fees in your specific deal, the actual payment happens at closing through the title company or settlement agent. Nobody writes checks to real estate agents directly during the transaction — it all flows through the closing table.

Here’s how it works. The title company receives the buyer’s funds (typically wired from their lender and their personal account). From the seller’s proceeds, the title company deducts the listing agent’s commission per the listing agreement. If the seller agreed to a concession toward the buyer’s agent, that also comes out of the seller’s proceeds. If the buyer is paying their agent directly, the title company handles that disbursement from the buyer’s funds.

Everything shows up on the Closing Disclosure, which both parties receive at least three business days before closing. This document is the final word on who pays realtor fees in your transaction and exactly how much. Check those numbers carefully — this is where commission math errors get caught. I’ve seen title companies miscalculate commission splits, apply the wrong percentage, or forget about negotiated credits. Review every line item.

The Future of Who Pays Realtor Fees

I’ve been in this industry long enough to see where the trend line points on who pays realtor fees, and here’s what I think happens over the next two to three years.

Total commissions will continue falling. The 5% to 6% era is over for good. I expect national averages to settle around 4% to 4.5% total within two years, with many transactions happening at 3% to 3.5% through discount brokerages and flat-fee models.

Buyer agent compensation will become more varied. We’ll see flat fees, hourly rates, tiered service packages, and hybrid models become mainstream. The percentage-based commission won’t disappear entirely, but it’ll face real competition from alternative pricing structures for the first time.

More sellers will question the listing agent commission too. If buyer’s agent fees are coming down, sellers will rightfully ask why they’re still paying 2.5% to 3% for a listing agent when companies like HomeRise can do the job for less. The traditional model will survive only for agents who can prove their value exceeds their cost — and many can’t.

The biggest winners in all of this are consumers. Both buyers and sellers now have more transparency, more choices, and more negotiating power over who pays realtor fees and how much those fees cost. That’s what we’ve been fighting for at HomeRise since day one — making sure who pays realtor fees is a conversation you have before signing anything, not a surprise at the closing table.

Frequently Asked Questions About Who Pays Realtor Fees

Do sellers still pay the buyer’s agent commission?

Not automatically. Before August 2024, sellers were essentially required to offer compensation to buyer’s agents through the MLS. After the NAR settlement, this is no longer mandatory. Sellers can choose to offer a concession toward the buyer’s agent fee, but they’re not obligated to. Many sellers still offer 2% to 2.5% to attract more buyers, especially in balanced or buyer’s markets.

How much are realtor fees on a $300,000 house?

At a traditional brokerage with a 5% total commission, you’d pay $15,000. With a flat-fee or low-commission service like HomeRise, your total could be as low as $3,000 to $9,000 depending on your listing agent’s fee and any buyer agent concessions. The range is wide because commissions are more negotiable now than they’ve ever been.

Can I sell my house without paying any realtor fees?

Technically yes — you can sell FSBO without an agent and not offer a buyer agent concession. But you’ll limit your buyer pool significantly, and you’ll handle all the marketing, negotiations, contracts, and legal compliance yourself. A better approach for most sellers is using a flat-fee MLS service to get full market exposure while keeping total costs under 3%.

Are realtor fees tax deductible?

Realtor fees aren’t directly tax deductible as an expense, but they do reduce your net proceeds from the sale, which lowers any capital gains you might owe. If you sell your primary residence and your profit is under $250,000 ($500,000 for married couples filing jointly), you likely won’t owe capital gains taxes at all under the IRS Section 121 exclusion. Consult a tax professional for your specific situation.

Who pays realtor fees in a new construction purchase?

With new construction, the builder typically has their own sales team — so there’s no listing agent commission in the traditional sense. If you bring a buyer’s agent, the builder may or may not offer agent compensation. Many builders have reduced or eliminated buyer agent incentives since the NAR settlement. Always ask upfront before touring model homes with an agent, and check whether the builder’s “base price” already factors in agent compensation that could be negotiated away if you don’t use one.

What happens if a buyer refuses to sign a buyer representation agreement?

As of August 2024, buyer’s agents are required to have a signed written agreement before showing homes. If a buyer refuses to sign, the agent cannot represent them or show them properties. Buyers can still attend open houses and contact listing agents directly without representation, but they’ll be working without someone exclusively advocating for their interests. It’s not impossible to buy without an agent, but it does put more responsibility on the buyer to handle negotiations and due diligence independently.